Fund Cuts Outlook for This Year and Next, Citing Concerns About Pace of Fed's Coming Departure From Easy-Money Policies

WASHINGTON—The International Monetary Fund cut its world growth forecast Tuesday amid deteriorating emerging-market prospects, urging authorities to shore up their economies as the U.S. prepares to exit its easy-money policies and wrestles with a budget impasse that threatens to derail the global recovery.

In its sixth consecutive downward revision, the IMF cut its growth forecast for this year by 0.3 percentage point to 2.9% and...